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LTSTSE:6560 +1.63%78 Return-on-Tangible-Equity is 22.71% as of Dec. 2025, which is 42% above its 10-year median of 16.04. GuruFocus rates TSE:6560 with a GF Score™ of 78/100 and a GF Value™ of 円3,155.99 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,009 Business Services companies, LTS ranks better than 67.89% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. LTS's annualized net income for the quarter that ended in Dec. 2025 was 円892 Mil. LTS's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円3,928 Mil. Therefore, LTS's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 22.71%.
The historical rank and industry rank for LTS's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6560'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -24.25 Med: 16.04 Max: 32.07
Current: 19.71
During the past 11 years, LTS's highest Return-on-Tangible-Equity was 32.07%. The lowest was -24.25%. And the median was 16.04%.
TSE:6560's Return-on-Tangible-Equity is ranked better than 67.89% of 1009
companies
in the Business Services industry
Industry Median: 10.71
vs TSE:6560: 19.71
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
LTS Return-on-Tangible-Equity Related Terms
LTS Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LTS's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSE:6560 vs VRSK, EFX, BAH: Return-on-Tangible-Equity Comparison
For the Consulting Services subindustry, LTS's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LTS Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, LTS's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LTS's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 22.71% mean?
LTS (TSE:6560) has a Return-on-Tangible-Equity of 22.71% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LTS and its competitors. This is 42% above median its historical median of 16.04. According to the industry distribution chart, LTS ranks #324 out of 1009 companies in the Business Services industry, placing it in the top 32.1%.
Is LTS's Return-on-Tangible-Equity too high?
LTS's current Return-on-Tangible-Equity of 22.71% is 42% above median its 10-year median of 16.04. The Business Services industry median Return-on-Tangible-Equity is 10.71. LTS's value of 22.71% is 112% above this industry median. Based on the distribution chart, LTS ranks #324 out of 1009 companies in the Business Services industry, which is above the industry midpoint. Overall, LTS has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LTS's Return-on-Tangible-Equity compare to VRSK and EFX?
According to the Business Services industry distribution chart, LTS ranks #324 out of 1009 companies for Return-on-Tangible-Equity. This puts LTS in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.71. LTS's value of 22.71% is 112% above this benchmark. While the company's 10-year median is 16.04 vs. the industry median of 10.71, LTS has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.71, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LTS's current Return-on-Tangible-Equity of 22.71% is 112% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LTS and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LTS's current Return-on-Tangible-Equity is 22.71%, which is 42% above median its own 10-year median of 16.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LTS stock overvalued right now?
Based on GuruFocus' analysis, LTS (TSE:6560) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,155.99, compared to a current price of 円1,811.00 — trading 42.6% below its estimated fair value. The current Return-on-Tangible-Equity is 22.71%, which is 42% above median its 10-year median of 16.04 and 112% above the Business Services industry median of 10.71. LTS's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For LTS (TSE:6560), the current Return-on-Tangible-Equity is 22.71% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LTS (TSE:6560) Overvalued in 2026?
Based on GuruFocus' analysis, LTS stock appears to be undervalued.
The current stock price of 円1,811.00 is trading 42.6% below its estimated GF Value™ of 円3,155.99.
GuruFocus considers LTS to be Significantly Undervalued.
Key valuation signals for TSE:6560:
Return-on-Tangible-Equity: 22.71% (42% above median its 10-year median of 16.04)
GF Value™: 円3,155.99 vs. price of 円1,811.00 (42.6% below fair value)
Industry Position: 112% above the Business Services median (#324 of 1009)
No single metric tells the full story. See the TSE:6560 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LTS Inc is engaged in the provision of services that transform and grow the businesses of its clients through capabilities and track record in business process management, a core methodology for supporting the implementation of transformation that is essential for corporate growth. The company is developing the Service Business and Platform Business. The Services business provides services to help clients establish operational transformations associated with introducing large-scale IT systems at their workplaces by implementing education and communication promotion measures to encourage changes in awareness and behavior at workplaces.
78GF Score
Get the complete analysis for TSE:6560
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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